Gold, silver gain as U.S. dollar, bond yields decline

Gold and silver prices are higher and near their daily highs at midday Wednesday, supported by a weaker U.S. dollar index and falling U.S. Treasury yields on this day. Trading was choppy and on both sides of unchanged today, as traders are awaiting new fundamental developments to move the precious metals markets. December gold futures were last up $4.70 at $1,798.10. December Comex silver was last up $0.112 at $24.20 an ounce.

The key outside markets today see the U.S. dollar index weaker. Crude oil prices are solidly lower and trading around $82.50 a barrel. Meantime, the 10-year U.S. Treasury note yield is presently fetching 1.539%, well down from this week’s high.

Global stock markets were mostly weaker in overnight trading. The U.S. stock indexes are mixed at midday. The major U.S. stock indexes this week have hit record highs. The indexes have made impressive recoveries from their early-October lows. Traders and investors remain upbeat amid third-quarter corporate earnings reports that are mostly beating market expectations. There are storm clouds on the horizon, however. China’s economic growth has slowed as the world’s second-largest economy deals with an overheating housing sector, resurgent Covid-19 cases in some regions, and an energy crisis that has produced shortages of some key raw materials—not only in China but also in nations that China supplies with those materials.

Tensions between the U.S. and China have up-ticked at mid-week, following reports the U.S. banned China’s biggest telecommunications operator, China Telecom, from doing business in the U.S.

Technically, December gold futures bulls have the overall near-term technical advantage amid a four-week-old price uptrend in place on the daily bar chart. Bulls’ next upside price objective is to produce a close above solid resistance at the September high of $1,836.90. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,750.00. First resistance is seen at today’s high of $1,800.00 and then at this week’s high of $1,811.50. First support is seen at this week’s low of $1,783.00 and then at $1,775.00. Wyckoff's Market Rating: 6.0

December silver futures bulls have the overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily chart. Silver bulls' next upside price objective is closing prices above solid technical resistance at $25.00 an ounce. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at today’s high of $24.33 and then at this week’s high of $24.695. Next support is seen at today’s low of $23.905 and then at $23.615. Wyckoff's Market Rating: 6.0.

December N.Y. copper closed down 940 points at 439.15 cents today. Prices closed near the session low today and hit a three-week low. The copper bulls have lost their overall near-term technical advantage. A four-week-old uptrend on the daily bar chart has been negated. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 465.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 420.00 cents. First resistance is seen at 450.00 cents and then at this week’s high of 456.85 cents. First support is seen at today’s low of 436.30 cents and then at 430.00 cents. Wyckoff's Market Rating: 5.0.
 

By Jim Wyckoff

For Kitco News

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